Home>Levelset Community>Legal Help>After I file a lien what is my next course of action?

After I file a lien what is my next course of action?

We have a customer that only has $400 past due but is refusing to pay. I tried an NOI and now a lien. After speaking with my account manager I know the next thing I can do is send a notice of intent to foreclose and then possibly take legal action to foreclose upon the property , but would that be the best course of action in this situation? Basically is there any other way to ensure I am paid what is due?

1 reply

Mar 23, 2020

There's no single rule of thumb on how to handle a construction payment dispute. As you mentioned above, sending an NOI will often lead to payment. And, actually pursuing a mechanics lien claim can be a great option too. But, that won't always lead to payment, unfortunately. Sometimes, additional steps will need to be taken. Let's look at some recovery options below. After reviewing them and the associated resources, you should have a better idea of what each recovery method entails - and that should help you determine what's best for your particular situation.

Notice of Intent to Foreclose

Deciding what to do next after filing a lien claim can be hard. Certainly, a Notice of Intent to Foreclose could force payment. Nobody likes dealing with a lien claim, and nobody will want to deal with a lawsuit over the potential foreclosure of their property. So, the threat of foreclosure can't be taken lightly. And, much like sending a Notice of Intent to Lien, threatening to enforce the lien claim is a pretty cheap and easy proposition. It might not always work, though - particularly when the threat of a lawsuit doesn't seem credible.

Enforcing a mechanics lien

When determining whether to proceed with a lien enforcement action, it's worth weighing the costs that will be incurred in filing suit and comparing those to the debt that's outstanding. Enforcing a mechanics lien means filing a full-blown lawsuit. That means it will cost well over $400 to proceed with a lien enforcement. Still, if a lien enforcement does sound like something you'd like to pursue, it'd be wise to consult a local Oklahoma construction attorney. They'll be able to review your circumstances and project documentation, then advise on how best to move forward.

Filing a claim in small claims court

Mechanics lien claims can't be enforced in small claims court. But, that doesn't mean some other legal claim can't be brought there. Filing a claim for breach of contract, a claim under the Oklahoma prompt payment laws, or some other legal claim could be appropriate. And, Oklahoma's small claims courts are specifically designed for streamlining smaller disputes (under $10,000).

Sending a debt to collections

Finally, sending a debt to collections is yet another option that might be viable. If you'd like to contact a collector or learn more about top collections agencies, these resources should be really valuable: (1) Construction Collectors in Oklahoma; and (2) Top Collection Agencies for Construction Companies.

0 people found this helpful

Helpful